Silver prices have experienced a decline of 1% today, settling at ₹89,231. This drop is largely attributed to a stronger dollar, leading some investors to take profits. The silver price today in India reflects the broader economic landscape influenced by recent decisions from the US Federal Reserve.
Impact of Federal Reserve Actions
The Fed recently initiated its easing campaign with a significant 50-basis-point rate cut in September, hinting at the possibility of two additional quarter-point cuts by year-end. These developments have sparked optimism for a smoother transition in the US economy, as inflation levels aim to stabilize.
However, Fed Chair Jerome Powell has cautioned against rapid further easing, clarifying that half-percentage-point cuts should not be considered the new standard. This more measured approach, alongside concerns that other major central banks may not follow suit as aggressively, has bolstered the dollar’s strength, impacting the silver price today in India.
International Economic Factors
In the international sphere, China’s decision to maintain its key lending rates despite potential room for easing has added complexity to market expectations. Investors are still hopeful for more stimulus from Chinese authorities, especially after disappointing economic reports in August. Additionally, consumer confidence in the Euro Area has shown improvement, climbing to -12.9 in September. Its highest level since February 2022.
Rising Demand in India
Looking ahead, India’s silver imports are project to nearly double in 2024, driven by robust demand from sectors such as solar panel manufacturing and electronics. In the first half of 2024, India imported 4,554 tons of silver, a significant increase from 560 tons during the same period last year, as buyers anticipate rising prices.
Technical Analysis
From a technical perspective, the current silver price today in India is under long liquidation, with open interest decreasing by 0.33% to 25,004 contracts. Key support is observ at ₹88,300; a breach below this level may test ₹87,375. On the upside, resistance is note at ₹90,190, with potential upward movement towards ₹91,155.
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